Staff Reporter :
Finance Minister AHM Mustafa Kamal on Friday hoped that both the poor and the businesses would be benefited from the implementation of the proposed budget for the next fiscal year (2022-23).
“The poor and the businesses will be benefited from the implementation of the new budget. Hopefully, our economy will be stronger and more vibrant with the execution of this budget,” Mostafa Kamal said while addressing a post-budget press briefing at the Osmani Memorial Auditorium in the capital.
Defending the government’s plan to give Bangladeshis scope to legalise unreported offshore assets without facing any questions from authorities, he also said, “The people of the country have a right to the money smuggled abroad, which the government aims to secure.”
“Those, who have taken their assets abroad without understanding
the consequence, this initiative will gear towards bringing these assets back into the mainstream of the economy,” he said.
In the draft budget for the upcoming fiscal year, the finance minister proposed a 15 per cent tax on immovable property located abroad and a 10 per cent tax on movable property if it is not brought back to the country.
M. Kamal believes that those who have amassed wealth by syphoning off money abroad will be encouraged by the amnesty offered in the budget to bring back the money.
On Thursday, the Finance Minister unveiled a Tk 6,78,064 crore spending plan for the upcoming fiscal year. The amnesty for undisclosed offshore assets is one of the proposed avenues for funding the expenditure.
But the proposal has drawn heavy criticism from various quarters. Economist Selim Raihan sees it as a “kind of endorsement” of money laundering. Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, said the proposal was not “morally acceptable, economically justified and politically wise.”
Countering the criticism, he said, “What has been trafficked is the right of the people of this country. If we place obstruction, the assets will not come back and in that case, how will we be benefitted? We want to do what other countries do. Seventeen countries are granting amnesty to bring back money into their economies.”
The Finance Minister claimed that similar measures are in place in the United Kingdom, the United States, Germany, Malaysia and Norway.
“Money has a distinctive feature. It goes where the return is higher. Those who smuggle money do not do so in suitcases. We are in the digital age now. It can be done in various ways,” he said.
He said no organ of Bangladesh was affected while all the macroeconomic indicators were in good shape, when the whole of the world was affected due to the impacts of the Covid-19 pandemic.
When asked about the integrated efforts from the government to deal with the price hike of essential commodities, he said that the governments renders its efforts so that there is no mismatch between demand and supply.
The Finance Minister claimed that the price of the locally produced items is now less, but the prices of imported products depend on the fluctuation of global market prices.
“But, I am giving assurance that the instability in the market won’t persist for long. The government will definitely have some efforts and the government is also committed in this regard. The government won’t fail in this area. We will be able to deal with it taking alongside all,” he said.
When the whole world is going through a difficult time, Bangladesh is not out of it, he said, “With every challenge brings opportunities. We will utilise the opportunities.”
Agriculture Minister Muhammad Abdur Razzaque, Education Minister Dipu Moni, Health and Family Welfare Minister Zahid Maleque and State Minister for Planning Shamsul Alam, among others, spoke at the briefing.
